Daimler AG said it will produce a new generation of transmission-integrated electric engines for Mercedes-Benz hybrid vehicles at its factory in Berlin, Germany.
The automaker said it will invest 40 million euros to convert a hall at the plant for electric engines. Some 50 employees will be involved in the development and production at the site.
Daimler's strategy is to develop technology and production of electric drive systems as a core competence in its Mercedes cars division.
Daimler has two joint ventures for the development and production of battery cells and the future manufacture of lithium ion battery systems with Evonik Industries AG.
The transmission-integrated version of an electric engine is built in as part of the automatic transmission and can develop an engine power of 15 kW and more.
It boosts performance by interacting with the combustion engine and lowers consumption by recovering energy during braking, for example, which charges the battery.
The plant currently produces V6 and V8 diesel engines and V12 biturbo engines for Mercedes and Maybach cars.
Volker Stauch, head of powertrain production for Mercedes cars, said the Berlin site will have a key role in shaping the future drive systems portfolio of Mercedes.
“The electrification of the drive system will play an important part in mobility in the future. The Berlin plant already has a wealth of expertise in the manufacture of electrically controlled components," Stauch said in a statement.